Contrasting GP Strategies Corporation (GPX) and Franklin Covey (FC)

GP Strategies Corporation (NYSE: GPX) and Franklin Covey (NYSE:FC) are both small-cap educational services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares GP Strategies Corporation and Franklin Covey’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
GP Strategies Corporation $490.56 million 0.86 $20.24 million $1.19 21.13
Franklin Covey $185.26 million 1.47 -$7.17 million ($0.53) -37.17

GP Strategies Corporation has higher revenue and earnings than Franklin Covey. Franklin Covey is trading at a lower price-to-earnings ratio than GP Strategies Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GP Strategies Corporation and Franklin Covey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GP Strategies Corporation 3.95% 12.16% 6.50%
Franklin Covey -3.87% -5.47% -2.68%

Insider & Institutional Ownership

89.2% of GP Strategies Corporation shares are owned by institutional investors. Comparatively, 52.1% of Franklin Covey shares are owned by institutional investors. 25.7% of GP Strategies Corporation shares are owned by insiders. Comparatively, 33.5% of Franklin Covey shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for GP Strategies Corporation and Franklin Covey, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GP Strategies Corporation 0 1 1 0 2.50
Franklin Covey 0 2 1 0 2.33

GP Strategies Corporation presently has a consensus price target of $29.50, suggesting a potential upside of 17.30%. Franklin Covey has a consensus price target of $22.00, suggesting a potential upside of 11.68%. Given GP Strategies Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe GP Strategies Corporation is more favorable than Franklin Covey.

Risk and Volatility

GP Strategies Corporation has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Summary

GP Strategies Corporation beats Franklin Covey on 10 of the 12 factors compared between the two stocks.

GP Strategies Corporation Company Profile

GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.

Franklin Covey Company Profile

Franklin Covey Co. is a global company specializing in performance improvement. The Company’s segments are Direct Offices, Strategic Markets, Education practice and International Licensees. The Direct Offices segment consists of its geographic sales offices that serve the United States and Canada, its international sales offices located in Japan, the United Kingdom and Australia, and its public programs group. The Strategic Markets segment includes its government services office, the Sales Performance practice, the Customer Loyalty practice, and a new Global 50 group, which is specifically focused on sales to large, multi-national organizations. The Education practice segment consists of its domestic and international Education practice operations, which are centered on sales to educational institutions, such as elementary schools, high schools, and colleges and universities. The International Licensees segment consists of its international licensees’ royalty revenues.

Receive News & Ratings for GP Strategies Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GP Strategies Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply